Sagicor General maintains excellent financial strength rating

Clients of Sagicor General Insurance Inc. (SGI) can be rest assured that they will continue to be protected by a secure and financially sound company, following the latest A.M. Best Financial Strength Rating report.

The international credit rating agency has affirmed the Financial Strength rating of “A- (Excellent)” of SGI and its Long-Term Credit rating of “A-”, which reflects excellent ability of Sagicor to meet its ongoing insurance obligations and excellent capacity to meet its ongoing senior financial obligations.

President and CEO of SGI, Keston Howell, expressed his satisfaction with the rating, saying “it demonstrates the level of financial prudence and risk management that we continue to apply to our operations. What is also pleasing is that A.M. Best gave a stable outlook for these positive ratings, which is indicative of the level of confidence they have in Sagicor following their thorough evaluation of our business and operations”.

According to the report, the excellent rating of Sagicor is supported by the strength of the balance sheet of the company, which A.M. Best describes as “Very Strong”; in addition to the maintenance of an “Adequate” Operating Performance of the insurance company, with steady growth in equity and revenue; “Favourable” Business Profile with respect to brand recognition and geographical spread; along with “Appropriate” Enterprise Risk Management controlled by a centralised approach to risk management.

This is the 18th consecutive year that Sagicor has achieved an “A- (Excellent)” rating, having first attained it in 2002.

“Our teams across the region continue to work hard to ensure the longevity of our business and the protection of our valued customers,” said Howell.

In terms of its view on the immediate future of the company, A.M. Best argues that a stable outlook is justifiable “despite the deteriorating economic conditions in Barbados, which can create pressure on Sagicor’s ratings. This is offset by the strongest level of balance sheet strength and strong parent company that has more access to financial markets than last year ($400 million more) after being listed on the Toronto Stock Exchange. There is more capital at the parent with plans ready to support growth or maintain capital strength at the stroke of a board vote”.